The Shower - S1-E25
Continuity mistake: Aunt Cindy's arms change position back and forth, between holding her drink with two hands, and holding with one hand and the other on her hip, while talking to Caleb and Julie at The Shower, when Julie is trying to get Cindy to leave them alone.
Continuity mistake: When the camera is focusing on the pool at the hotel it slowly moves up and then we see Ryan and Seth walking down some stairs (in the upper left hand corner). We can see Ryan swinging his arms and he's not holding a drink, but in the next shot he's holding a drink.
Continuity mistake: When Ryan goes to say goodbye to Seth and Seth is sitting on his bed listening to his iPod, in one shot they are in his ears and the next they are out without him moving.
Answer: She is referring the episode entitled: The Best Chrismukkah Ever, episode 13, season 1. She goes out christmas shopping with Ryan and gets stopped by a security when she is out by Ryan's car. He asks to look inside her bag and finds a stolen watch and some other stolen things.